Wholesale price index (WPI)-based inflation declined to a six-month low of 2.05% for March as prices of vegetables and food items moderated, government data showed on Tuesday. WPI inflation was 2.38% in February 2025 and 0.26% in March 2024.
“Positive rate of inflation in March 2025 is primarily due to increasing prices of manufacture of food products, other manufacturing, food articles, electricity and manufacture of textiles etc,” the industry ministry said in a statement.
As per the latest WPI data, food inflation eased to 1.57% in March from 3.38% in February, with vegetables seeing a sharp drop. Deflation in vegetables was 15.88% during the month compared to 5.8% in February.
Inflation in potatoes, which was rising in double digits since February 2024, fell in March 2025. Deflation in potato in March 2025 was 6.77%.
In onion, inflation eased to 26.65% in March against 48.05% in February.
Manufactured products prices, however, spiked at 3.07% in March compared to 2.86% in February.
Fuel and power too saw an uptick with a 0.20% rise in March against a deflation of 0.71% in February.
The wholesale inflation averaged 2.3% for FY25, higher than last year (-0.7%), but significantly lower than 11.2% in FY22-23, India Ratings and Research Associate Director Paras Jasrai said.
“The positive spillover effect of low commodity prices would be felt through low wholesale inflation in the near term. Moreover, the satisfactory completion of rabi output would result in food inflation to be comfortable. On the whole, Ind-Ra expects the wholesale inflation to be in the vicinity of 1.5 per cent in the near term,” Jasrai said.